Maputo — The Norwegian company DNO in October will drill an exploration well in search of hydrocarbons in Inhaminga, in the central Mozambican province of Sofala.

It is believed that Mozambique's sedimentary basin offers huge potential for hydrocarbons. This has lured others, such as the South African petrochemical giant Sasol and the Indonesian company Buzi Hydrocarbons, to invest in exploratory research in the region.

DNO has been operating in Mozambique since 2003. It has been using seismic surveys, aeromagnetic data collecting and geochemical sampling in Inhaminga, including the districts of Muanza and Dondo.

Hydrocarbons, particularly natural gas, have been found elsewhere in Sofala in the districts of Cheringoma, Caia, Gorongosa and Maringue.

As for Buzi Hydrocarbons, prospecting is still at an early stage. The company is planning to invest 30 million US dollars, of which 20 million will be spent on seismic surveys.

In 2004 Mozambique began exporting natural gas to South Africa from its Pande and Temane fields in Inhambane.

Meanwhile, Mozambique's Mineral Resources Minister, Esperanca Bias, announced last week that the US based oil company Anadarko Petroleum Corporation has discovered oil in the Rovuma basin.

However, the Minister warned that further studies are needed to assess whether the oil deposit is commercially viable.